₦airaland Forum

AFRIPRUD 1:1 bonus and 60k dividend..

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Mpeace:
Story. Where did foodstuff crash by 40%

Na you wan stay Lekki. Please, stop disturbing us wey dey Trenches. Food prices don crash. Enter market and stop ordering even kpomo via Jumia.

If you ask me, na who I go ask...

ojeysky:
How come transcorp was only able to pay 60k dividend with profit of over 90bn and EPS increase of over 200%. The maths is not adding up o

AFRIPRUD

DIV. 60kobo
BONUS: 1:1

https://doclib.ngxgroup.com/Financial_NewsDocs/43304_AFRICA_PRUDENTIAL_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2024_FINANCIAL_STATEMENTS_MARCH_2025.pdf

unite4real:
I didn't expect the EPS to be less than N5. The profit after tax attributed to owners of parent is N51 Billion. So if the current OS of around 10 Billion was used, the EPS reported is wrong. Even if you used the OS figure pre reconstruction, you still cannot arrive at the N1.45 they reported.

Do they prorate EPS in a year where share reconstruction happens?

Does anyone know why this is happening

I hope the AGM will not be stormy

Transcorp used to have one noncontrolling interest like that. Maybe that's the case although I haven't looked at the results

Mpeace:
Story. Where did foodstuff crash by 40%

To be sincere with this report, food prices have actually gone down significantly as we speak. If you are opportuned to have a contact at the early stage of sourcing items from the food chain, you will notice the big difference.

The reason why many urban centres are yet to witness the change is because of the effect of middlemen who continue to profiteering and exploit the citizens by not reducing their margins and deceiving people that food prices are still high.

A good example is the 4 litre paint container of garri which used cost about NGN5,000.00. It is now between NGN3,000.00 to NGN3,500.00.

As per cost of vegetables, until we are able to implement firm irrigation systems for growing them, their prices will continue to be high when there is lower volumes of rainfall within the environment.

🙏🏽

Good morning wonderful people. 🙌🏽

The breakdown is on page 97...

unite4real:
I didn't expect the EPS to be less than N5. The profit after tax attributed to owners of parent is N51 Billion. So if the current OS of around 10 Billion was used, the EPS reported is wrong. Even if you used the OS figure pre reconstruction, you still cannot arrive at the N1.45 they reported.

Do they prorate EPS in a year where share reconstruction happens?

Does anyone know why this is happening

I hope the AGM will not be stormy

Agbalowomeri:
Transcorp used to have one noncontrolling interest like that. Maybe that's the case although I haven't looked at the results

As if I knew, noncontrolling interest was 42B
Omo this thing don balloon to nearly half of the PAT

Exactly!
It has always been that way...

Agbalowomeri:
Transcorp used to have one noncontrolling interest like that. Maybe that's the case although I haven't looked at the results

KarlTom:
The breakdown is on page 97...

Now I get it. The OS used was prorated (weighted average) as I was thinking

Agbalowomeri:
As if I knew, noncontrolling interest was 42B
Omo this thing don balloon to nearly half of the PAT

I think that's the carrying amount of the other subsidiaries like Hotels and power and Afam.

Transcorp PLC usually disclose the aggregate report of all these subsidiaries of which the portion attributed to the parent and the ones that is non controlling which are attributed to the subsidiaries are separated.

KarlTom:
The breakdown is on page 97...

What a meaningless eps computation that gives a lower value than reality. Same shares of 4 turned into one is being weighted. When no money was raised or shares bought back this computation is pure distortion.

unite4real:
I didn't expect the EPS to be less than N5. The profit after tax attributed to owners of parent is N51 Billion. So if the current OS of around 10 Billion was used, the EPS reported is wrong. Even if you used the OS figure pre reconstruction, you still cannot arrive at the N1.45 they reported.

Do they prorate EPS in a year where share reconstruction happens?

Does anyone know why this is happening

I hope the AGM will not be stormy

For the full year 2024 result, Transcorp used the fact that the OS for the entire Business year was not always 10.16bn neither was it always 40.64bn(pre-reconstruction).
Hence they used the Weighted Average of the two OS.

how?
The Weighted average between: The Pre-reconstruction OS & the Cancelled OS

Cancelled OS=
Old OS -New OS =
40.64bn -10.16bn=30.48bn

I think they believe the cancelled OS was still part of the business year capitalisation.🤷

Weighted Average=(40.16bn +30.48bn)/2=
70.64bn/2
=35.32bn OS for the year..

It kind of makes sense the weighted average OS used(35.32bn) is skewed closer to the old Pre-construction Os(40.64bn) since for over 9months of the business year-2024, the old OS was still in play..

If one divides the the controlling interest portion of the PAT by the weighted-OS (35.32bn), one will get how are they arrived at the EPS.

The details are in page 97 as @KarlTom has already pointed out.

BabsO2:
What a meaningless eps computation that gives a lower value than reality. Same shares of 4 turned into one is being weighted. When no money was raised or shares bought back this computation is pure distortion.

I really cannot wrap my head around this robbery.

Transcorp had N51 Billion PAT. OS was divided by 4 in October and share price multiplied by 4. Yet they went ahead to use a weight average to compute EPS with about 35B shares.
I don't know if this is normal.. why don't they also prorate the value of each share as well and pay back the difference to share holders who held the stock before reconstruction.

From the N51 B PAT, the computation was on 35 billion units when in reality the number of shares that gets paid from this is 10 billion units.
Where are the remaining dividend of the other 25 billion units going to

Princkez:
AFRIPRUD 1:1 bonus and 60k dividend..

WOW. GLORY to JESUS 💪

BabsO2:
What a meaningless eps computation that gives a lower value than reality. Same shares of 4 turned into one is being weighted. When no money was raised or shares bought back this computation is pure distortion.

Well, Shares were cancelled transferred to their reserve and their share capital was equally reduced by 4. Looks technically like a buy-back to me

I believe that should count for sth.
Also, the OS was over 40bn for about 9months.. Seems only appropriate for the full year.

Probably 10.16bn should be used only from Q4,2024 going forward I suppose.

Woe to the world in which women are displaced
Happy International Women's Day to the women in the house.

chimex38:
Well, Shares were cancelled transferred to their reserve and their share capital was equally reduced by 4. Looks technically like a buy-back to me

I believe that should count for sth.
Also, the OS was over 40bn for about 9months.. Seems only appropriate for the full year.

Probably 10.16bn should be used only from Q4,2024 going forward I suppose.

The computed number is a meaningless mathematical exercise. Waste of time for the common shareholder abeg. Maybe they're trying to use the confusion to claim they have a high dividend payout ratio.

emmasoft:
Woe to the world in which women are displaced
Happy International Women's Day to the women in the house.

😘

unite4real:
I really cannot wrap my head around this robbery.

Transcorp had N51 Billion PAT. OS was divided by 4 in October and share price multiplied by 4. Yet they went ahead to use a weight average to compute EPS with about 35B shares.
I don't know if this is normal.. why don't they also prorate the value of each share as well and pay back the difference to share holders who held the stock before reconstruction.

From the N51Bn PAT, the computation was on 35 billion units when in reality the number of shares that gets paid from this is 10 billion units.
Where are the remaining dividend of the other 25 billion units going to

Hmmm.. But I want to believe by my understanding that the 51bn PAT is just consolidation from the quarterly results and not entirely new profit..
Out of it, interim has already been paid already with old OS of 40.64bn.

The report is just to present accounts for the full year with what is in the bank account.

I think the issue is we don't have a separate Q4 result for more informed decision.
All I see is- for the year ended 31st December 2024.

There would probably be issues if they had used the 35bn OS on Q4 result alone..

The figure used for computing the EPS is correct.

2024 has 366 days.
The Reconstruction was completed on October 28, 2024 (valid from 31 October, 2024 using T+3).
OS of 40.64b was valid for 305days
OS of 10.16b was valid for 61days

Average OS = ((305*40.64) +(61*10.16)) /366
= 35.56b

chimex38:
For the full year 2024 result, Transcorp used the fact that the OS for the entire Business year was not always 10.16bn neither was it always 40.64bn(pre-reconstruction).
Hence they used the Weighted Average of the two OS.

how?
The Weighted average between: The Pre-reconstruction OS & the Cancelled OS

Cancelled OS=
Old OS -New OS =
40.64bn -10.16bn=30.48bn

I think they believe the cancelled OS was still part of the business year capitalisation.🤷

Weighted Average=(40.16bn +30.48bn)/2=
70.64bn/2
=35.32bn OS for the year..

It kind of makes sense the weighted average OS used(35.32bn) is skewed closer to the old Pre-construction Os(40.64bn) since for over 9months of the business year-2024, the old OS was still in play..

If one divides the the controlling interest portion of the PAT by the weighted-OS (35.32bn), one will get how are they arrived at the EPS.

The details are in page 97 as @KarlTom has already pointed out.

unite4real:
I really cannot wrap my head around this robbery.

Transcorp had N51 Billion PAT. OS was divided by 4 in October and share price multiplied by 4. Yet they went ahead to use a weight average to compute EPS with about 35B shares.
I don't know if this is normal.. why don't they also prorate the value of each share as well and pay back the difference to share holders who held the stock before reconstruction.

From the N51 B PAT, the computation was on 35 billion units when in reality the number of shares that gets paid from this is 10 billion units.
Where are the remaining dividend of the other 25 billion units going to

The distortion is perhaps for their view graphs to justify the 60k dividend and give a false impression of high dividend payout. Perhaps this years interim dividend will be more than one naira.

KarlTom:
The figure used for computing the EPS is correct.

2024 has 366 days.
The Reconstruction was completed on October 28, 2024 (valid from 31 October, 2024 using T+3).
OS of 40.64b was valid for 305days
OS of 10.16b was valid for 61days

Average OS = ((305*40.64) +(61*10.16)) /366
= 35.56b

I don't really understand the rationale for all these weighting Lol. So 1 share pre-reconstruction had same weight as 1 share post-reconstruction? Wha do we even need the weighting for when dividend will be paid based on new OS? Abi dem recently employed one intern data scientist who wan show skills 😂

Wema Bank Plc announces Rights Issue of 14.29bn ordinary shares at N10.45
March 7, 2025 Wole
Wema Bank Plc through its Stockbrokers, Global Asset Management Nigeria Limited and Qualinvest Capital Limited has submitted an application to Nigerian Exchange for the approval and listing of a Rights Issue of Fourteen Billion, Two Hundred and Eighty-Six Million, Seven Hundred and Eighty-Five Thousand, Four Hundred and Seventeen (14,286,785,417) ordinary shares of 50 Kobo each at N10.45 per share.

The right issue is on the basis of two (2) new ordinary shares for every three (3) ordinary shares held. The qualification date the Rights Issue was Wednesday, 5 March 2025.

Agbalowomeri:
I don't really understand the rationale for all these weighting Lol. So 1 share pre-reconstruction had same weight as 1 share post-reconstruction? Wha do we even need the weighting for when dividend will be paid based on new OS? Abi dem recently employed one intern data scientist who wan show skills 😂

I think they are just out to confuse the uninitiated, that is their way.
eps at December 2024 should be PAT/OS which should be 51.524/10.102.

pluto09:
I think they are just out to confuse the uninitiated, that is their way.
eps at December 2024 should be PAT/OS which should be 51.524/10.102.

Transcorp is not joking with this growth rate. It's a new candidate for N500 in 5 years if this growth rate is sustained

Not really (at the bolded)

Even though I'm not a professional financial analyst, I believe that they have a very competent team.

You can't expect them to make such a blatant mistake though I'm not 100% in alignment with the 'abracadabra'...

pluto09:
I think they are just out to confuse the uninitiated, that is their way.
eps at December 2024 should be PAT/OS which should be 51.524/10.102.

KarlTom:
The figure used for computing the EPS is correct.

2024 has 366 days.
The Reconstruction was completed on October 28, 2024 (valid from 31 October, 2024 using T+3).
OS of 40.64b was valid for 305days
OS of 10.16b was valid for 61days


Average OS = ((305*40.64) +(61*10.16)) /366
= 35.56b

Exactly, Another angle..
I think i prefer yours

Agbalowomeri:
I don't really understand the rationale for all these weighting Lol. So 1 share pre-reconstruction had same weight as 1 share post-reconstruction? Wha do we even need the weighting for when dividend will be paid based on new OS? Abi dem recently employed one intern data scientist who wan show skills 😂

I believe, iF some of the Profit was made from the old OS. Then Eps (not dividend) will consider this old OS

Agbalowomeri:
Transcorp is not joking with this growth rate. It's a new candidate for N500 in 5 years if this growth rate is sustained

The growth rate has been massive in the last two audited years. PAT for common shareholders grew by 110% in 2023 and another 215% on top of 2023 in 2024. Can growth continue like this over the next five years? If it does N500 doable.